The Labor Code 2019 stipulates that there are 02 types of labor contracts: fixed-term employment contracts and indefinite-term employment contracts. Compared with the Labor Code 2012, the new regulations have eliminated seasonal labor contracts or certain jobs with a term of less than 12 months.
Below, are the criteria to distinguish 02 types of contracts according to the provisions of the Labor Code 2019:
Criteria |
Fixed-term employment contracts |
Indefinite-term employment contracts |
Duration |
No more than 36 months from the effective date of the contract |
Indefinite term |
Re-signing contract |
- Can only sign a maximum of 02 time employment contracts with a definite term - After that, if the employment contract expires but the employee continues to work, he/she must sign an indefinite-term employment contract. |
N/A |
Termination of employment contract |
- The employment contract expires - If the employee continues to work after the contract expires: + Must sign a new labor contract within 30 days. + If the contract is not renewed within 30 days, the old contract will become an indefinite term labor contract. |
Contract do not expire |
Notice period before unilateral termination of the contract |
- Employment contract with a term of less than 12 months: at least 03 working days notice - Employment contract with a term of 12–36 months: at least 30 days notice |
At least 45 days notice |
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